List of Semiconductor ETFs

Updated Mar 8, 2019
Semiconductor exchange-traded funds (ETF) are the class of ETFs which invest in the stocks of companies involved in the business of researching, developing, manufacturing and operating semiconductors and other related electronic units.

How Semiconductor ETFs Work?

Most of such semiconductors ETFs invest in global companies, which include big names like Intel Inc. (INTC), Apple Inc. (AAPL), Samsung, Huawei, and others. Though majority of the portfolio of such semiconductors ETFs comprises of American companies, a lot of global electronic giants are also included. Such semiconductors ETFs work by either investing in stocks of semiconductor companies based on their own active research, or by passively tracking and replicating the constituents of a semiconductor sector market index which is categorized as passive investment. Since this a sector-specific ETF, such investments are prone to overall sector specific performance. For instance, a boom in cryptocurrency industry during the earlier half of 2018 led to many individuals as well as businesses going for cryptocurrency mining ventures. It increased the demand for CPUs and GPUs which benefited the semiconductors stocks and hence the semiconductors ETFs generated great returns. As the cryptocurrency mania settled down later, the returns from the semiconductors stocks and those from the semiconductors ETFs retreated to lower levels. A lot of variations are available in the semiconductors ETF marketplace.One can find leveraged ETFs which attempt to return multiple times (2x or 3x) the return generated on the benchmark index. There are also inverse ETFs which attempt to generate the return which are in the opposite direction of the returns generated by the tracking index (also called as Short ETF or Bear ETF). One can also explore a combination of leveraged as well as inverse ETFs where one can find leveraged and inverse semiconductor ETFs where returns are not only magnified by a factor (like 3x) but are is also in the opposite direction. Investors should take note of the expense ratio before investing in such semiconductor ETFs, as the charges may vary over a wide range depending upon the active or passive investment style, investment in foreign semiconductor companies and several other factors.

List of All Semiconductor ETFs

Following is the list of all 9 exchange-traded funds that FKnol has in its database for ETFs which belong to the Semiconductor category:

Where do Semiconductor ETFs Invest?

A long list of companies and different financial instruments exist where the Semiconductor exchange-traded funds may invest the money collected from the ETF investors. Below is a small sample of companies whose stocks may qualify for investment by Semiconductor ETFs, though there can be many more businesses and financial instruments where these ETFs can park the capital for returns: